Too many SMEs rely on unprotected loans

5th February, 2018

Too many SMEs rely on unprotected loans

Research by Mutual Wealth has revealed that nearly half of Small to Medium Businesses are relying on unprotected debts, which is causing a drop in general business confidence. 48% are currently using loans and personal savings to ensure funding for their business.

Wealth manager Old Mutual Wealth are using the latest figures to encourage businesses to ensure they have the appropriate cover in place to protect their business from financial risk. Many UK businesses have seen drops in profit in the last year, which has seen many drawing funds from personal savings.

The poll also revealed that many business owners are getting concerned about their financial position and their vulnerability. With the rise of the gig economy and self-employed workers, this is getting more of a concern.

Fortunately, a well-structured and comprehensive business protection plan can deliver vital reserves of cash, exactly when you need it. It can cover your business against the possibility of an unexpected loss of a key member of staff within the company, which is especially important for smaller businesses.

If you want to find out more about the importance of cover, browse our quotes page or call us directly to arrange a chat, and we can go through your options.